Altria yesterday revised its guidance for 2013 full-year reported diluted earnings per share (EPS) from a range of $2.51 to $2.56 to a range of $2.57 to $2.62.
“The revised guidance reflects the impact of the Sept. 11, 2013, decision by the arbitration panel presiding over the nonparticipating manufacturer adjustment (NPM Adjustment) dispute for 2003 that six out of 15 states failed to diligently enforce laws that require escrow payments from the cigarette manufacturers that have not signed the Master Settlement Agreement (Arbitration Panel Decision),” the company said in a note posted on its website.
“As a result of the Arbitration Panel Decision, Philip Morris USA Inc. … expects to receive a credit of approximately $145 million, plus interest, against its 2014 Master Settlement Agreement payment obligations and to record an increase of approximately $145 million in its reported pretax earnings for the third quarter of 2013.
“Additionally, the revised guidance reflects the reversal of tax accruals no longer required.”
Meanwhile, Altria reaffirmed its guidance for 2013 full-year adjusted diluted EPS to be in the range of $2.36 to $2.41, representing a growth rate of 7 percent to 9 percent from an adjusted diluted EPS base of $2.21 per share in 2012.